Oneok (OKE) announced that it has executed a definitive agreement with DT Midstream (DTM) under which Oneok will sell its three wholly owned interstate natural gas pipeline systems for a total cash consideration of $1.2B subject to customary adjustments. Based on Federal Energy Regulatory Commission filings, the purchase price represents 10.8 times previous 12 months EBITDA as of June 30. The transaction, unanimously approved by the boards of directors of both Oneok and DT Midstream, is expected to close in the fourth quarter of 2024, and is subject to customary closing conditions, including Hart-Scott-Rodino Act clearance. Upon closing of this transaction, the net proceeds from the sale are expected to enhance Oneok’s financial flexibility and its deleveraging trend toward its previously announced target of 3.5 times during 2026.
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